Salient to Investors:

Scott Minerd at Guggenheim Partners writes:

  • The world is awash with liquidity and the promise of more easy money and QE in Europe bodes well for equities and bond prices.
  • The recent high of the NYSE Advance-Decline Line is bullish.
  • In Europe, negative deposit rates should encourage commercial banks to put their ECB reserves into the economy.
  • Japan is in the very early stages of a fundamental economic restructuring. Abe’s appointment of 5 female ministers shows he is serious about increasing the female workforce, which will raise potential for economic growth.
  • Dovish FOMC members will prevail even more in 2015 as hawkish members hold only 2 of the 10 votes. Next year’s annual rotation in voting members will further weaken the hawks and boost the doves.
  • Any short-term Fed hike in 2015 would take 2 or 3 more years before reaching the point of recession.
  • Central banks will be do whatever is necessary to keep their economies from failing

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